A chart showing different investments including alternative ways to invest
Experienced investors know there are plenty of chances to invest beyond conventional financial assets. Alternative investments are one great example and include things like private equity or venture capital, art and antiques, real estate, and more. Basically, these are investments that do not fall into traditional investment categories like stocks, bonds, and other more obvious forms of financial investments. However, they are important pieces of a well-rounded financial portfolio for accredited investors or qualified purchasers.
Headshot of Andrew Burish
“It has become increasingly important for investors to consider exposure to private markets,” says Andrew D. Burish, Managing Director and Financial Advisor at UBS Financial Services Inc. “In our view, private markets offer a combination of high potential returns, a long-term focus, and access to innovative and fast-growing businesses,” he explains. “Essentially, alternative investments give investors access to a wider universe of unique investment opportunities.”
It is important to have the right financial advisors on your side. These professionals can help perform extensive due diligence if you are considering alternative investments. The Burish Group at UBS has access to many different alternative investment platforms. “Including private investments in a portfolio strategy can help diversify return sources, boost return potential, and reduce volatility,” he says. Indeed, historically speaking, private markets have performed well over public markets since 2005, says Burish.1
In other words, increasing the different types of investments you have can benefit you in the long run. While some investments prove unsatisfactory, other investments may not. “For example, modifying a traditional 60% equity — 40% bond portfolio to include 30% to alternatives would have increased annual portfolio returns almost 1.4% while lowering realized volatility by -1.6%,” says Burish. “Our financial advisors can help determine the appropriate alternative investment allocation that aligns with you and your financial needs and goals.” Contact The Burish Group at UBS today to find ways to diversify your portfolio with alternative investments. •
